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Edmund is a Boy Scout. While on a camping trip, the scout leader tells the boys to stay away from the lake. Some of the scouts ignore the leader and go fishing by the lake anyway. Edmund wants to do what the leader tells him and believes that good behaviors are rewarded while bad behaviors are punished. Which level of moral reasoning is he in?
Factor Market
The factor market is the marketplace for the services of factors of production (labor, capital, land, and entrepreneurship) where these services are bought and sold.
Marginal Product
The increase in output that results from employing one more unit of a production factor, holding all other factors constant.
Income Distribution
How a nation’s total GDP is distributed amongst its population.
Income Effect
Refers to the change in an individual's or economy's income and how that change will impact the quantity demanded of a good or service.
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